Blockchains 101: VECHAIN

3 min readDec 22, 2020

Blockchain applied to Supply Chain

Introduction

VeChain (Tickers: VET & VTHO) is a Blockchain Network applied to disrupt the supply chain industry by providing transparency and reducing friction of existing supply chains management models.

VeChain was Founded in China by Sunny Lu and Jay Zhang in 2015 and did an ICO for its VEN (ERC20) token in September 2017, raising $20 million worth of ETH.

In 2018 the token was migrated from Ethereum to VeChain dedicated blockchain and VEN token rebranded VET.

Description

The VeChain platform aims principally at serving business customers to help them process their dataflow and improve their supply chain processes via the use of Decentralized Ledger Technology (Blockchain) with progressive integrating Internet of Things (IoT) capabilities.

VeChain has a substantial existing customer base among established companies and applies a form of “Blockchain as a Service” (BaaS) model.

The VeChain platform operates a Proof of Authority Consensus algorithm with “Authority Masternodes” mostly controlled by Enterprise clients as entry requirements are high (Full KYC, 25M VETs as collateral, enterprise grade servers).

VeChain Authority Masternodes Infrastructure

VeChain governance is managed through a Steering Committee elected by VET stakeholders at regular intervals of time via the non-profit VeChain Foundation.

Supply model

VeChain relies on a double token system: VeChainThor (VET) and VeChain Thor Energy (VTHO). VET is used to provide value to smart contracts on its blockchain while VTHO is the underlying energy (or gas) used to power transactions and actions on the network with the following characteristics:.

VTHO are automatically generated in any address containing VET at the speed of 5x10–8 VTHO / VET / block (10s)
70% of VTHO paid in each transaction is destroyed and 30% awarded to the Authority Masternode Operator.